The MBS Market closed last week trading down (- 56 bps). The stock market was up for most of the week, which saw investors pull money out of bonds and into stocks – pushing mortgage pricing up.

If you have read my last few mortgage updates, I have said that Fannie Mae pricing hits were coming. In order for the US government to pay for unemployment taxes, Social Security, etc – they have increased Fannie Mae’s guaranteed fees. These fees are being charged to lenders which must pass them onto borrowers. This is increasing mortgage pricing by approximate .4 – .6 pts on each rate or approximately .125% higher on the rate for the same costs.

I am going out of town on Wednesday January 25th to Telluride, Colorado, for a nice quick vacation. If you would like to lock in pricing on a new loan, please contact me by Tuesday January 24th. I will be back on Monday, January 30th.